Getting the best deal on your currency exchange when selling your property in Spain

12 Nov 2015

WHEN I sell my house in Spain, what is the best way to maximise the amount of Sterling I receive into my UK bank account? Secondly, how can I ascertain the amount of Sterling I will receive given the completion on my property is six weeks away?

THIS QUESTION is interesting because when using a Spanish bank to exchange the Euros to Sterling it is not only the rate but also the fees that have to be considered. Typically, charges can be up to 1% for simply depositing the draft from the notary and transferring the Euros out. Add to this the rate of exchange and you really could be losing out.

Using a currency company such as Moneycorp is a way to ensure that you are receiving the most competitive exchange rate. However, we can also save client’s money on the bank fees too, definitely ensuring more Sterling arrives into your UK bank account.

For the second part of your question there is of course no way of predicting at what level the £/€ rate will be in 6 weeks’ time. Although the past week has definitely seen a slight improvement for Euro sellers, six weeks is a long time in the currency market! However, relating back to a previous question on the timing of transfers, you do have an option that can help:

Once your property is sold and the 10% deposit secured you are able fix the exchange rate for delivery of the Sterling at a later date (to coincide with your completion). Forward contracts protect against adverse currency movements and can be used to lock into favourable exchange rates. This will also mean that you will know to the exact penny the Sterling amount you will receive after completion. The process is simple and requires only a small deposit as the balance is payable once you have the proceeds of the sale.